Interim Management Statement

RNS Number : 3086G

MITIE Group PLC

29 January 2010

 



29 January 2010

MITIE Group PLC Interim Management Statement

MITIE Group PLC ("MITIE" or the "Company"), the strategic outsourcing and asset management business, today releases its interim management statement for the period from 1 October 2009 to date.

Trading update

MITIE has performed well since 1 October 2009 and has had a good start to the second half of the year. MITIE Group earnings continue to grow in line with management expectations and the Board is confident that earnings for the full year will also meet management expectations.

Since the announcement of our half yearly results on 23 November 2009 we have successfully retained and expanded a number of existing contracts and have secured new work across all three divisions.  The Facilities Management team has had a particularly good quarter being awarded contracts with clients from the financial services, transport and utilities sectors. 

We are seeing a high level of facilities and property management opportunities and the trend towards multiple service and facilities management contracts continues as clients look for efficiencies in their cost base. The relatively small parts of our business exposed to the new build and fit-out elements of the construction industry have seen no further deterioration in market conditions but are yet to see sustained evidence of recovery and we are still experiencing slippage on some projects.

Update on acquisitions

The integration of Dalkia FM, bought in August 2009, is going well and we are on track to deliver the projected synergies. The acquisition has enabled us to launch MITIE CarbonCare in December which brings together the energy management, compliance, engineering and renewable energy capabilities of MITIE as an integrated environmental impacts solution.

The acquisition of Environmental Property Services Ltd (EPS) in November has enhanced our scale in the social housing market and we are in the process of integrating EPS with the social housing business in our Property Management division. 

Financial position

There have been no material changes to our financial position since 23 November 2009. MITIE benefits from a strong balance sheet and committed funding lines of £230.0m in place until January 2012. This gives MITIE the capacity to take advantage of value creating opportunities as they arise and are considered appropriate by the Board.

Board change

MITIE is delighted to announce the appointment of Larry Hirst CBE as a Non-Executive Director of the Company with effect from 1st February 2010.
 
Larry is currently Chairman of IBM Europe, Middle East and Africa and has held a number of senior positions during his career with IBM over the past 32 years. He was previously General Manager, IBM Northern Region and Chief Executive IBM UK & Ireland for six years and has had management responsibility for operations in the US, Europe, and South Africa. Larry is also Non-Executive Chairman of UK Trade and Industry Technology Board, Chairman of e-skills Sector Skills Council, a Commissioner of the UK Commission for Employment and Skills and a UK Business Ambassador.  Larry will add considerable experience to the MITIE Board particularly in relation to his vast experience of sales and marketing, thorough understanding of contract and service businesses, both in the private and public sectors, and his international experience. Larry will also be a member of the Audit Committee. It is confirmed that there are no details to be disclosed pursuant to LR 9.6.13 R (1) to (6) and Mr Hirst does not currently hold any shares in the Company.   

In addition the Company announces that Terry Morgan CBE, currently Non-Executive Director and Chairman of the Remuneration Committee, will become a member of the Nomination Committee on 1st February 2010. 

Outlook

2010 should provide considerable opportunities for MITIE. Private sector clients are consolidating contracts as they seek to obtain cost and carbon efficiencies. We also expect the public sector to increase levels of outsourcing in response to budgetary pressures although the timing of such activity is currently difficult to predict. The Group is well placed for the future.

Future reporting dates

MITIE will announce its results for the year ending 31 March 2010 on Monday 17 May 2010.

For further information, please contact: 

John Telling, Group Corporate Affairs Director. T:  020 70228413 M: 07979 701006

Erica Lockhart, Investor, Public & Media Relations Manager. T: 020 7022 8438 M: 07979 784488

Conference call

MITIE Group PLC will be holding an investor / analyst conference call today at 8.00am which can be accessed from within the UK and internationally by dialling [phone]. 

Analyst Visit

MITIE Group PLC is today holding a site visit for analysts.  No material new information will be disclosed.

 

END

 

 

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